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Ethereum Experiences Price Drop Amid Broader Crypto Sell-Off
Key Takeaways
- Ethereum recorded a less severe price drop than other cryptocurrencies during a recent market sell-off.
- Analysts suggest the traditional four-year cycle of Bitcoin may be shifting to a more liquidity-driven pattern.
- Overall crypto market liquidations amounted to $205.19 million, with long trades being predominant.
- Willy Woo, a well-known crypto analyst, questions the sustainability of Bitcoin’s four-year cycle.
- Positive sentiment around Cardano persists, although discussions have decreased to normal levels.
WEEX Crypto News, 2026-01-13
In a significant week for the cryptocurrency market, Ethereum stood out by experiencing a smaller dip compared to its peers amid a widespread sell-off. This development comes at a time when some analysts suggest a notable shift in Bitcoin’s historical price cycle dynamics.
Ethereum’s Resilience Amid a Broad Market Downturn
During a period marked by turbulence, Ethereum managed to limit its losses, reflecting its relative strength in the face of a general market downturn. While the larger digital currency markets endured a broad sell-off, Ethereum’s price drop was noticeably less severe over the past 24 hours. The pressure on the market saw approximately $205.19 million wiped out across various cryptocurrencies, predominantly due to long positions losing momentum. Despite this, Ethereum’s ability to hold a steadier ground than other assets provides valuable insight into its performance during challenging times.
Re-evaluating Bitcoin’s Four-Year Cycle
The crypto world is no stranger to volatility, and analysts have long relied on the four-year cycle as a predictive model for Bitcoin’s price movements. However, a new narrative is emerging that challenges this traditional framework. Willy Woo, a respected figure in crypto analytics, argues that the established four-year cycle for Bitcoin’s market dynamics might be becoming obsolete. Woo’s analysis suggests that capital flows are increasingly driven by liquidity rather than cyclical patterns, implying that Bitcoin’s market behavior may become a more continuous process.
This insight is echoed by several market observers who note the absence of clear four-year rhythms in recent capital movements. This changing dynamic could lead to more nuanced strategies among investors who have previously leaned heavily on cyclical cues.
Crypto Market Liquidation: The Scale and Scope
The recent market dip has resulted in notable liquidations across cryptocurrencies, amounting to roughly $205.19 million as traders reacted to shifting market conditions. Ethereum alone accounted for $41 million in liquidations, divided between $25.81 million in long positions and $15.19 million in short positions, as per Coinglass data. These figures highlight the substantial impact of market fluctuations on trader positioning and the inherent risks involved in cryptocurrency investment.
Positive Sentiment Around Cardano
Meanwhile, despite the overall market decline, Cardano continues to attract positive attention. Retail sentiment on platforms like Stocktwits remained bullish, even as the volume of discussions eased from high to normal levels. This suggests a sustained interest and confidence in Cardano, positioning it as an engaging option for investors amidst broader market anxiety.
Broader Implications for the Crypto Market
The current market environment raises several strategic considerations for investors and analysts alike. The debate over Bitcoin’s cycle disrupts established predictions and could lead to new interpretations of market behavior. Furthermore, Ethereum’s relative resilience underscores the importance of diversification and strategic asset allocation in reducing risk exposure during market swings.
As the crypto landscape evolves, investors are advised to stay informed and adaptable, leveraging insights and analytical expertise to navigate the opportunities and challenges presented by the evolving dynamics of digital assets.
FAQ
What is the significance of Ethereum’s smaller price drop?
Ethereum’s smaller price drop compared to other cryptocurrencies indicates its relative strength and potential as a more stable investment during periods of market volatility.
How are Bitcoin’s market cycles changing?
Analysts suggest that Bitcoin’s traditional four-year cycle is evolving into a more liquidity-driven model, meaning its price may fluctuate more consistently rather than in predictable cycles.
What data supports the change in Bitcoin’s cycle model?
Crypto analyst Willy Woo supports this hypothesis by analyzing capital flows that no longer align with the historical four-year cycle, suggesting a shift in market behavior towards liquidity-driven movements.
How much was liquidated from the crypto markets recently?
In the recent sell-off, around $205.19 million was liquidated from the crypto markets, primarily driven by long positions losing traction.
What remains bullish about Cardano despite the market dip?
Despite the market downturn, retail sentiment around Cardano remains bullish, though the level of discussion has normalized, indicating sustained investor interest and optimism.
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Sun Valley Releases 2025 Financial Report: Bitcoin Mining Revenue Reaches $670 Million, Accelerating Transformation to AI Infrastructure Platform
On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.
• Financial Performance:
Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.
Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.
Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.
• Mining Operations and Costs:
A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.
The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;
The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.
As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.
• Strategic Progress:
The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.
CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."
"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."
The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."
The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.
The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.
This includes:
· Cost of Revenue (excluding depreciation): $1.553 billion
· Cost of Revenue (depreciation): $38.1 million
· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)
· Mining Machine Impairment Loss: $81.4 million
· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million
The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.
The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.
The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.
The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.
The total annual operating costs and expenses amount to $1.1 billion.
Specifically, they include:
· Revenue Cost (excluding depreciation): $543.3 million
· Revenue Cost (depreciation): $116.6 million
· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)
· Miner Impairment Loss: $338.3 million
· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million
The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.
The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.
As of December 31, 2025, the company's key assets and liabilities are as follows:
· Cash and Cash Equivalents: $41.2 million
· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million
· Miner Net Value: $248.7 million
· Long-Term Debt (related party): $557.6 million
In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.
As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.
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